Remove Cost of Capital Remove Development Remove Management Remove Technology
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The Rise of FinTech in Supply Chains

Harvard Business Review

A new type of services company could transform global supply chains: Financial technology companies that act as intermediaries in facilitating transactions between a company and its suppliers. The use of FinTechs allows suppliers to access funding at the multinationals firm’s lower cost of capital.). Insight Center.

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The Case for Investing More in People

Harvard Business Review

.” There is a virtuous cycle between productivity and people: Higher levels of productivity allow society to reinvest in human capital (most obviously, though not exclusively, via higher wages), and smart investments result in higher labor productivity. Productivity in most developed economies has been anemic.

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What U.S. CEOs Should Do with the Money from Corporate Tax Cuts

Harvard Business Review

The cost of capital is at historic lows, averaging below 6% for most large U.S. Indeed, for most companies, the value of accelerating growth greatly exceeds the value of returning capital to shareholders. Indeed, for most companies, the value of accelerating growth greatly exceeds the value of returning capital to shareholders.

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The Three Decisions You Need to Own

Harvard Business Review

At many companies the total cash investment in acquisitions, R&D, and fixed assets has not earned back its cost of capital after adjusting for the time lag in realizing incremental benefits. It reflected the reality that a lot of GE’s growth will be coming from the developing world, and the leaders have to be there.

P&L 8
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4 Ways Leaders Can Get More from Their Company’s Innovation Efforts

Harvard Business Review

For any business to succeed over the long term, it must earn a return that exceeds its cost of capital. That’s why good managers put so much focus on measuring and managing return on investment (ROI) as a basic operational practice. Here are four things leaders can do. Don’t Get Trapped in Your P&L.

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The Comprehensive Business Case for Sustainability

Harvard Business Review

Today’s executives are dealing with a complex and unprecedented brew of social, environmental, market, and technological trends. These require sophisticated, sustainability-based management. ” Improving risk management. Investing in sustainability is not only a risk management tool; it can also drive innovation.

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The Real Reasons Companies Are So Focused on the Short Term

Harvard Business Review

Investors punish companies with a short-term orientation by applying higher discount rates to them, which increases the cost of capital for those companies. In contrast, companies with a long-term orientation are rewarded with a lower cost of capital, which allows them to afford more innovation—a virtuous cycle.